By Sheri Kasprzak
Atlanta, Oct. 28 - Galaxy Energy Corp. said Thursday it has issued $5 million in 30-month senior secured convertible notes.
The deal is the second tranche in a financing in which Galaxy agreed to sell $20 million in notes and three-year purchase warrants to buy 5,194,806 shares at $1.54 per share.
In the first tranche of the deal, completed Aug. 19, the company issued $15 million in notes secured by Galaxy's assets. The notes may be converted into shares at $1.87 per share.
Galaxy, a Denver-based oil and natural gas exploration and production company, plans to use the money from the financing for its coal bed methane-development program in the Powder River Basin of Wyoming.
| Issuer: | Galaxy Energy Corp.
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| Issue: | Senior secured convertible notes
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| Amount: | $5 million (second tranche); $20 million (total)
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| Maturity: | 30 months
|
| Coupon: | Prime plus 725 basis points
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| Price: | $1.54
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| Conversion premium: | 40%
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| Conversion price: | $1.87
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| Warrants: | 5,194,806
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| Warrant expiration: | Three years
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| Warrant strike price: | $1.54
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| Placement agent: | The Shemano Group
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| Settlement date: | Oct. 27 (second tranche); Aug. 19 (first tranche)
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| Stock price: | $1.61 at close Oct. 20 (last trade)
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